Bitcoin has the largest market cap, meaning it’s a good indicator of how the wider cryptocurrency market is doing. However, the crypto landscape has changed in the thirteen years since Bitcoin was invented, with thousands of altcoins entering the scene. With so many different cryptocurrencies, we’re left asking ourselves whether Bitcoin is still a worthwhile investment in 2022.
Bitcoin Background
Bitcoin was invented in 2009 and it’s considered to coincide with the emergence of blockchain technology, which is the infrastructure propping up cryptocurrency. In the beginning, Bitcoin grew in the background, with investors predicting its future value. Now, we’ve reached a point where Bitcoin is a household name and has even been adopted as a legal tender in El Salvador.
Bitcoin Investment Pros
With legit businesses beginning to accept Bitcoin as a viable payment option and centralized banks starting to set up exchanges, it’s left many investors asking if it’s a worthwhile investment. Whether it’s worthwhile will depend on your circumstances, but here are the pros of investing in Bitcoin:
- Minimal trading. Investing in stock is a businesstodaysnews tedious business and can only be accomplished during market opening hours. Bitcoin transactions are instant and exchanges operate 24/7 – it’s simple to buy, trade, and sell.
- New opportunities. Bitcoin is relatively new in tech terms, meaning volatility can lead to high rewards as fresh coins emerge.
- Inflation risks are low. Crypto is decentralized, meaning it’s never going to suffer from hyperinflation like traditional currencies.
- Liquidity. Bitcoin is considered the most liquid asset because it can be traded across many different exchanges for other cryptos, regular currencies, or other tradable assets.
Bitcoin Investment Cons
Bitcoin and cryptocurrency may be the future of the finance industry, but there’s still some way to go. Unfortunately, there are many risks involved when investing in Bitcoin including:
- Hacking threats. Bitcoin has never been hacked thankfully, but that doesn’t mean businesses, individuals, or digital wallet providers are invulnerable.
- Volatility. The price of Bitcoin is like a rollercoaster, meaning your high investment can depreciate in as little as a day. You need to be prepared to lose money if you’re searching for short-term gains.
- Wallet loss. If you lose the personal keys to your wallet, you’ve let your entire crypto assets walk away. Carry out extensive digital wallet research before making your investment.
Where To Invest in Bitcoin
Before diving into an exchange, you need a reputable digital wallet like the DeFi wallet, which is decentralized and allows trades between hundreds of cryptocurrencies. Although many wallets come with built-in exchanges, you need to monitor the market somehow. To do this, you can use a crypto exchange like Coinbase or track the market alongside your wider portfolio, by using MetaTrader4.
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Summary
Bitcoin is the largest cryptocurrency out around, and its complete collapse is highly unlikely. If you’re looking to make a short-term investment, Bitcoin is a worthwhile investment if you’ve got the funds to risk. If you’re looking for a long-term investment, you’re more likely to find higher returns by exploring altcoins knowcarupdate.
